FUNCTIONS OF MERCHANT BANKING
As per Merchant Banking Regulations, we can mainly perform three activities which are:
Difference Between Merchant Banking And Investment Banking
In olden times, merchant banks were also known as "accepting and issuing houses" in the U.K. and "investment banks" (IB) in the USA. Except of this distinction in nomenclature, there is no essential functional difference between them.
As per Merchant Banking Regulations, we can mainly perform three activities which are:
Issue Management function of merchant Banking helps capital market to increase the supply of securities. Being a Issue Manager we provides assistance to the Private Limited Companies intended to be converted into Public Limited Companies by way of obtaining necessary permission from the relevant authorities, preparing prospectus for public issue of shares and debentures, involving itself in the collection of application money, scrutiny of applications, arranging for lottery relating to allotment, if required, allotment of shares and debentures, refund of application money etc.
2. Underwriting
Underwriting Operation is one of the important functions of a Merchant Banker by which it can increase the supply of stock/shares and debentures in the market. It is an arrangement whereby the underwriter undertakes to subscribe the unsubscribed portion of shares/debentures offered by any Public Limited Company. This encourages the prospective issuers to offer shares/debentures to the public for subscription and they can raise fund from the public for implementation of their industrial undertakings.
3. Portfolio Investment Management Services
One of the most important functions of merchant banking is to provide Portfolio Management service to the customer. Basically, Portfolio Management Services program has four different wings to provide portfolio investment management services.
In addition we can also perform the activities of:
1. Project counseling
2. Pre-Investment Studies.
3. Merger & Acquisitions.
Future functions would be Factoring, Asset Securitization, OTC Market, Capital Re-Structuring etc.
Customers of Merchant banking
1. Any Bangladeshi over 18 years of age
2. Any Corporate body (ies)
3. NRB (s) through NITA Account
1. Project counseling
2. Pre-Investment Studies.
3. Merger & Acquisitions.
Future functions would be Factoring, Asset Securitization, OTC Market, Capital Re-Structuring etc.
Customers of Merchant banking
1. Any Bangladeshi over 18 years of age
2. Any Corporate body (ies)
3. NRB (s) through NITA Account
